Pillar(s) of the planned socialist economy:
a. State ownership
b. Planned resource allocation
c. Leading role of the party
d. All of the above
e. None of the above
Question 2
The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:
a. The creation of a supranational central bank reduced expected inflation.
b. The supranational central bank increased the money supply rapidly, thereby causing interest rates to fall.
c. Actually, interest rates in Italy exploded after the creation of the European Monetary Union, due to the lack of initial confidence in the European Central Bank.
d. All of the above.
e. None of the above.
Before the stick is broken, it must first be bent (the transition state).
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